Fixed Assets


Primarily same as inventory based financing except a term loan based on production machinery/equipment.

What:

-        alternative to traditional bank lending

-        term

-        security based on equipment vs cash-flow/earnings

-        range: $250k-$10MM

-        advance: 60-75%

-         approx costs: 20-24% per annum

Why:

-        working capital when not available via traditional lenders

-        fewer financial covenants than traditional bank facility

-        A/R financing without notification to account debtor (customer)

-        finance MBOs/LBOs, acquisitions, turnarounds, stock repurchases … other unique opportunities

How:

-        Corp financial stsements: most recent QTR & year end, value, location, schedule , corp info,  personal financial statements, A/R, A/P status, inventory tracking system etc

Who:

-        companies who are unable to secure loan/line from conventional lenders

-        companies with heavy investment  in assets but marginal profitablity or thin capitalization

-        companies in distress/turnaround situations

-        fast-growth early-stage companies with little or no track record